Surat city BJP Vice-President and former Income Tax officer PVS Sharma was on Saturday arrested. He will later be produced before the court.
The Income-Tax Department had in mid-October carried out search operations against PVS Sharma. Sharma had made allegations against Kalamandir Jewellers in Surat accusing them of avoiding tax on the Rs110 crore black money which they allegedly deposited in the bank during demonetisation.
The search operations against Sharma revealed unaccounted income and Benami properties. Later, Sharma had tried to commit suicide by hanging himself at his residence. He was shifted to a private hospital for treatment where he was arrested today upon discharge.
During the raid, officials also recovered several fake documents. Sharma also ran a newspaper that forged circulation figures to get advertisements.
Surat I-T Deputy Director (Investigations) filed a complaint against PVS Sharma and company director Sitaraam Adukiya with the Umra Police station.
The search operations at PVS Sharma’s properties had extended to cover Sanket Media Private Ltd which owned the Satyam Times, a daily in Gujarat and English.
Raids revealed that the company with which Sharma was associated had forged to show circulation for its Gujarati edition as 23,500 and 6,000 for its English edition.
However, a handwritten note in a stock register showed that the stock sought for the printing of the paper was for only 300 to 600 copies of both the Gujarati and English edition.
Officials said the company forged circulation figures to get more advertisement from both government and private players.
How PVS Sharma’s circulation forgery came to fore
The company brought raw material worth Rs2.43 crore for printing the paper from one Mahesh Trading Company from April 1, 2013, to October 21, 2013. Later officials searched for Mahesh Trading Company and found that its officer was the old office of Sharma’s Chartered Accountant Adukiya.
It thus emerged that though the accounts showed the raw materials being purchased from one Mahesh Trading Company, no such company existed.
Thus Adukiya was also named in the FIR filed with the Umra Police station.
The complaint said PVS Sharma showed raw material for the printing business being brought from companies that did not exist.
With the help of the fake entries and fake circulation figures, PVS Sharma through his company got Rs70 lakh of advertisement from government agencies and Rs2 crore worth of advertisement from private ones.
Earlier police arrested Adukiya and Manager Mushtaq Baigh. Before Sharma could be arrested, he attempted suicide.
While he was under treatment at the hospital, Sharma was detained, and later after he was discharged from the hospital, he was arrested.
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